Tax Planning

Reducing taxes is an essential piece in preserving your retirement plan. Tax laws can be confusing, and little mistakes lead to larger tax issues. Each year millions of people overpay in taxes without even knowing it, leading to a lower retirement income. Our financial planners offer retirement tax consulting that pays critical attention to tax liability during every step of your financial planning process to minimize problems and maximize tax deductions.

Tax Diversification

There are several ways to develop a tax efficient investment strategy in order to create more flexibility in managing your taxes now and when you are ready to retire. Your money can be held in three different types of accounts and they are all taxed differently. Our tax advisory services include asset diversification into these three accounts in order to create the highest after-tax net retirement income.

Roth Conversion Strategies

Most individuals have the majority of their retirement assets in tax-deferred accounts that are subject to ordinary income tax. Our financial planners offer tax consulting as part of the retirement planning and recommend strategies to shift assets from the tax-deferred accounts to tax free accounts using Roth conversions. This strategy is important because Roth individual retirement account holders have more control over taxes in retirement. With a Roth conversion, you simply “prepay” the taxes on the amount you convert, which allows you to capture all future growth and income as tax free. Our wealth management team and CPA’s use meticulous strategies to project how much money you should convert to a Roth IRA over a period of time in order to control your tax bracket long-term and get the most value from your investments.

Tax-Loss Harvesting

Tax-Loss Harvesting is a strategy our financial planners use to turn money lost from an investment into a profitable opportunity. Our tax planners use the capital losses that inevitably occur to reduce your tax bill. You don’t truly have a gain or a loss on any asset until you sell it. When the asset is sold we are able to use that capital loss to offset your capital gains and income tax. The investment can then be replaced, or harvested, with a similar investment in order to maintain proper balance and diversification within your portfolio.

Jeffrey Levine (Forbes/Kitces.com/BluePrint Wealth Alliance) explains the retirement security opportunities and concerns presented by Donald Trump’s executive order on Multiple Employer Retirement Plans and required minimum distributions. Jeff also tells us how the IRS is throwing salt in the state and local tax deduction limit wound. Plus, will contributing to your retirement account lower your taxes and let you … Read more

Season 5 : Episode 1

Marc Levinson, author of The Economist Guide to Financial Markets: Why They Exist and How They Work explains how understanding financial markets can help you make fewer investing mistakes and improve everything from your home to your job to your portfolio. Plus, what does Tax Reform 2.0 have in store for us? What to do with a few extra bucks … Read more